Unmanned Aerial Vehicles

Progress Toward Meeting High Altitude Endurance Aircraft Price Goals Gao ID: NSIAD-99-29 December 15, 1998

GAO reviewed the high altitude endurance unmanned aerial vehicle program and found that the Defense Department (DOD) does not expect to produce the Darkstar or Global Hawk aircraft within its goal of $10 million per plane. DOD's price projections are now $13.7 million for Darkstar and $14.8 million for Global Hawk. In addition, these projections may understate the actual amount by which the vehicles' unit price will exceed the $10 million threshold because DOD officials, in their agreements with contractors, used a definition of unit flyaway price that excludes several cost categories that are traditionally included in determining unit flyaway cost. Including these costs will increase the average unit price of each plane.

GAO noted that: (1) DOD does not expect to be able to produce Darkstar or Global Hawk HAE vehicles within its goal of $10 million per unit in fiscal year 1994 dollars; (2) DOD's price projections, that updated the original estimates of $10 million, are $13.7 million for Darkstar and $14.8 million for Global Hawk; (3) in addition, these projections may understate the actual amount by which the UAV's unit price will exceed $10 million because in their agreements with the HAE contractors, program officials used a definition of unit flyaway price that excludes several cost categories that are traditionally included in determining unit flyaway cost; and (4) including these costs will increase the average unit price of each air vehicle.



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